MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock • 4 min read

The Society of Pension Professionals (SPP) has written to all 650 members of parliament to warn against the risks of reducing or removing salary sacrifice arrangements for pension contributions.

The SPP's paper said research commissioned and published by HM Revenue & Customs (HMRC) earlier this year showed the motivations for companies to offer salary sacrifice included national insurance (NI) savings for both employers and employees. The SPP noted HMRC's research has led to speculation that chancellor Rachel Reeves will look to make savings by abolishing or reforming salary sacrifice for pensions in her upcoming Budget later this month.  The SPP noted around a third of private sector employees use salary sacrifice arrangements, as well as almost 10% of public sector workers. Th...

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